ECB Raises Benchmark Interest Rate 25Bps to 3.25%

ECB Raises Benchmark Interest Rate 25Bps to 3.25%

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses recent economic data, focusing on core inflation cooling in April and its influence on decision-making. It highlights the role of a lending survey in assessing credit conditions, which contributed to a decision to adjust rates by 25 basis points. Despite inflation remaining high, the approach taken was cautious, with an emphasis on staying data-dependent. The discussion also considers whether a more significant rate change was possible, ultimately opting for a conservative strategy.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors contributed to the decision regarding core inflation?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How did the lending survey impact the understanding of credit conditions?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the statement about inflation being 'unacceptably high' imply for future actions?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What does being 'data dependent' mean in the context of economic decisions?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What was the cautious approach taken in the decision-making process?

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